Legislation offering sales tax incentives to data centers is headed to the Idaho Senate.
House members narrowly approved the measure on Tuesday on a 35-34 vote.
Officials with the Idaho Department of Commerce are backing a measure that would offer sales tax rebates to eligible server equipment, which are typically replaced every three to five years in a data center.
There are currently seven data centers located in Idaho. Supporters say this bill would help make the state more competitive for other data centers looking to relocate to the Gem State.
The estimated cost of the bill would result in an annual reduction of the state's general fund budget by $531,000.
Twenty other states already offer this type of rebate.